4 Billion for luxury flats in Mount Pleasant

andysweats · Post by **andysweats** » 12 Feb 2016, 17:29

http://www.independent.co.uk/voices/com ... 80865.html" onclick="window.open(this.href);return false;

Will shares go over £8 a share?

Post by **TrueBlueTerrier** » 12 Feb 2016, 17:32

Sorry 2 years late

http://www.royalmailchat.co.uk/communit ... 18&t=59681" onclick="window.open(this.href);return false;

andysweats · Post by **andysweats** » 12 Feb 2016, 19:26

I was told that if Royalmail sold the land at Mount Pleasant it could raise £1 billion, which would £1 on the share price. If Royalmail sell off the luxury flats for £4 billion surely the share price will go up by £4?

Post by **baldrick** » 13 Feb 2016, 10:47

Royal Mail won't be selling the flats when they are built. They will be selling the land to a developer who will build and sell the flats.
Perhaps Royal Mail should stop providing mail services and become a property developer instead, it seems to be more profitable.

Post by **TrueBlueTerrier** » 13 Feb 2016, 14:52

andysweats wrote:I was told that if Royal mail sold the land at Mount Pleasant it could raise £1 billion, which would £1 on the share price. If Royal mail sells off the luxury flats for £4 billion surely the share price will go up by £4?

They might sell them for £4 Billion, but no one will know what effect that has on the share price. There are just over 4 billion total shares in RM PLC and the price going up by £4 when the sell the flats/land would mean someone thinks that RM is worth £33,560,000,000

. Even simple maths would suggest that a £4billion sale would add at the very most £1 to the share price, but that would be extremely unlikely due to the market taking it into account before the sale happened, and any rise would be countered by large investors selling their stock to make a quick profit.

Any change in share price based on the sale would be short lived, long-term effects on shares prices usually come about because of trading statements, legal matters, board changes and regulatory matters, not one-off sales.

Post by **plymouth3** » 14 Feb 2016, 13:50

There are only 1 billion shares in RM fact.

arnold cheshire · Post by **arnold cheshire** » 14 Feb 2016, 15:32

plymouth3 wrote:There are only 1 billion shares in RM fact.

Yes the rm was valued at3.3billion and shares started off at £3.30p

Post by **TrueBlueTerrier** » 14 Feb 2016, 15:50

However, I still don't see RM being valued at £8 Billion because of I sale.

toomuchcoke · Post by **toomuchcoke** » 14 Feb 2016, 16:57

TrueBlueTerrier wrote: However, I still don't see RM being valued at £8 Billion because of I sale.

Especially as the the RM would already be valued at £8Bn prior to the sale. It's not like someone came along and pressed £4Bn in "used, non-sequential bills" into Moya's hands for nothing! If the site was worth £4Bn, then it was already worth £4Bn before it was sold and the value of the company would've reflected that (to some extent or other). The questions, from a stock market POV, are how much is the RM receiving from this deal (if those flats are ultimately being sold for £4Bn then the RM will be receiving less than that unless the developers are working for free!) and what are they intending to do with the money they do receive.

ROYALMAILCHAT